EPFO: The Employees’ Provident Fund Organisation has released new guidelines for a consolidated declaration format regarding tax deduction at source exemptions. This update comes in light of the Income Tax Act, 2025, which is set to replace the Income Tax Act, 1961, starting April 1, 2026.Forms 15G and 15H will be phased out and substituted with Form 121. These new instructions are directed at EPFO regional offices that act as income payers.
Background to regulatory changes
The introduction of Form 121 is associated with the new income tax framework that will take effect on April 1, 2026. According to the revised legislation, the previous declaration forms for non-deduction of TDS will no longer be accepted. The EPFO has been instructed to adjust its procedures to comply with the updated legal requirements. This modification aims to standardize declarations and minimize redundancy under the new tax system.
Major Key Highlights
Effective Date:- April 1, 2026
Governing Law:- Income Tax Act, 2025 (replaces Income Tax Act, 1961)
Authority Employees’:- Provident Fund Organisation (EPFO)
Major Change:- Forms 15G & 15H are phased out → Replaced by Form 121
Eligibility Criteria and Filing Process
Form 121 is available for submission by resident individuals whose estimated tax liability for the relevant financial year is zero. This declaration is specifically for individuals requesting TDS exemptions on qualifying income and is not compulsory for all members. The individual making the declaration must fill out and sign Part A of the form. Part B should be completed by the payer, which would be the relevant EPFO regional office.
Responsibilities assigned to EPFO regional offices
The EPFO has instructed its regional offices to assign a unique identification number (UIN) to every Form 121 submitted. The UIN should consist of a sequential number, the relevant tax year, and the payer’s tax deduction and collection account number. Offices are expected to maintain a consistent UIN sequence starting from April 1, 2026. These steps are intended to ensure traceability and compliance with audit requirements.
Reporting, Uploads, and System Integration
Regional offices are required to prepare a consolidated monthly report of all Form 121 declarations received. This report must be uploaded to the Income Tax e-filing portal. The generated UIN should also be quoted in the quarterly TDS return filed in Form 140. EPFO has directed its internal systems division to enable digital e-signing and online submission of Form 121 for members.
